Automotive Meetings Tangier-Med 2016: Conclusion of investment contracts in the automotive sector

M. Moulay Hafid Elalamy, Minister of Industry, Trade, Investment and the Digital Economy, launched, 23 November, 2016, in Tangier, the sixth edition of Automotive Meetings Tangier-Med (AMT).

Organised under the High Patronage of His Majesty King Mohammed VI, May God assist, by the Moroccan Association for Automotive Industry and Trade (AMICA), this flagship event of the Moroccan automotive industry aims to boost partnerships between customers, automotive suppliers and subcontractors.

M. Moulay Hafid Elalamy, Minister of Industry, Commerce, Investment and the Digital Economy, stressed during his speech that this meeting highlights the assets of the automotive industry which transformed into a true growth lever, thus significantly participating to the industrial acceleration of the Kingdom. The sector has indeed committed to more local integration, developed its fabric of national operators and further diversified its activities.

This remarkable growth, supported by the installation of a first and then a second major manufacturer, is consolidated, says M. Minister, by the present structuring of the sector into performing ecosystems, as part of the industrial acceleration Plan 2014-202. Such ecosystems are valuable catalysts, moving the sector upmarket and establishing its presence durably and irreversibly in the automotive world while opening up real opportunities for its players.This structuring, he added, will allow by 2020 to employ more than 160,000 people and generate more than 100 billion dirhams in exports.

Conclusion of investment contracts: 9 projects for an amount of 441 million dirhams and 2122 jobs created

The highlight of the inaugural session of the Automotive Meetings Tangier-Med was the signature by Moulay Hafid Elalamy and the leaders of the concerned companies of 9 investments contracts in the automotive sector.

The investment projects amounting to 441 million dirhams will create 2122 jobs and generate a turnover of 2268 million dirhams by 2020.They focus on projects of extension or creation of enterprises with activities related to the ecosystems "Automotive wiring" and " Vehicle interior & seats”.

M. Elalamy emphasized that these projects will contribute to the strengthening of integrated growth for the automotive sector, in perfect agreement with the logic of implemented ecosystems. These projects, he added, will have a positive impact in terms of creating employment, transfer of know-how and human resources and skills development.

Suppliers’ convention on local integration

The Ministry of Industry, Commerce, Investment and the Digital Economy, PSA, AMICA and the Federation of Vehicle Equipment Industries (France), have organised on this occasion a suppliers’ convention themed on deep local integration in order to present to equipment manufacturers the needs of automotive manufacturers in terms of subcontracting and encourage them to support the strengthening a competitive and stable sourcing base.

The goal is to form a more complete and deeply integrated industry by completing the set of ecosystems in place with new trades and technologies that are not available locally yet.

It should be recalled that PSA group decided in 2015 to launch an industrial project in Morocco by setting up a production facility for vehicles and engines in Kenitra to serve the needs of Africa and Middle East, and strengthen the sourcing of automotive components in Morocco.

About automotive ecosystems

To this date, seven ecosystems have been launched in the automotive sectors as part of the Industrial Acceleration Plan. The ecosystems cover the automotive sectors “automotive wiring”, “vehicle interior and seats”, “Metal pressing”, “Automotive batteries” and “Motor and Transmission” and concern two automotive manufacturers, namely Renault and PSA Peugeot.

Ambitious goals for the sector by 2020

  • Automotive wiring ecosystem: 26,7 billion dirhams of turnover , creation of 70.000 new jobs and an integration rate of 66%.
  • Metal pressing ecosystem: 5,3 billion dirhams of turnover , creation of 5.000 new jobs and an integration rate of 76% .
  • Automotive batteries ecosystem: 1,6 billion dirhams of turnover , creation of 1.500 new jobs and an integration rate of 90% .
  • Vehicle interior and seats ecosystem: 10.6 billion dirhams of turnover , creation of 3.500 new jobs and an integration rate of 65% .
  • Power Train ecosystem:6,4 billion dirhams of turnover and creation of 10.000 new jobs.
  • Renault ecosystem: 21,3 billion dirhams of purchase per year, an investment of 900 billion euros and an integration rate of 65%.
  • PSA ecosystem: 10,6 billion dirhams of purchase per year, 20.000 vehicles per year with an integration rate of 80%, 200.000 engines a year and training 1.500 engineers and skilled technicians.

…. An attractive « Morocco Offer »

  • Subsidies for investment.
  • Provision of rental property (275 ha dedicated to the sector) at attractive prices.
  • Implementation of a Centre for studies, development and tests.
  • Human resources Qualification: detailed training schemes, declined by profile, year and region supported by the training aids.
  • New investment charter built around 5 key measures: new 0% industrial tax for a 5 years period, free Zone status by region, free zone status for major export industries, indirect exporter status, and diverse support for the less favoured regions.

Evolution of the sector’s workforce

Development of the local integration rate

Evolution of the sector’s export turnover